Taishin FHC’s overall net zero roadmap
In 2021, Taishin FHC became a founding member of the “Taiwan Alliance for Net Zero Emissions”, announcing that it will achieve net zero emissions from Taishin FHC own operations in 2030. Taishin also received the SBTi target approval in July 2022, in terms of scope 1 and scope 2, the greenhouse gas reduction strategy is set to limit the increase in temperature within 1.5°C, and the target is set to reduce carbon emissions by 46% compared with the base year of 2019 by 2030, which is equivalent to an annual carbon reduction of 4.2%; In terms of scope 3, 2019 is also the base year for the reduction targets of financing and investment positions by well below 2°C.
Net zero pathways of our own operation(Scopes 1+2)
The 30th anniversary of Taishin made its focus on “Dedicated to Sustainbility & Living Green” and strongly advocates “From Zero to Hero”- everyone can be a hero in helping resolving the climate crisis. We actively take the following actions to ensure net zero emissions for our own operations.
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2021
- Participated and being a founding member of the “Taiwan Alliance for Net Zero Emissions”
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2023
- Reached 17% for renewable energy use
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2025
- useReached 26% for renewable energy use (40% of the branch offices use green electricity)
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2030
- Reached net zero for Taishin FHC’s own operations (Reached 100% for renewable energy use)46% absoloute GHG emission reduction in 2030
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2050
- Achieve net zero emissions from its own operations
Net zero for our investment and finance portfolio
In response to the future demand for climate risk management, Taishin has taken practical actions to react to the “environmental sustainability” of its own operations and the “net zero carbon emission” of its financial business. Since the Science-based target (SBT) project launch in 2021, we have carried out an inventory of carbon emissions in scope 1, scope 2 own operations and in scope 3 of important asset categories for investment and financing. We committed in 2022 and the targets got approved by the Science Based Targets Initiative (SBTi) in July at the same year. Through SBT’s reduction target setting, Taishin will reduce emissions year by year according to the plan, hoping to lead investment and financing targets to jointly reduce carbon and transform, so as to reduce the impact of transition risks.
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Scope 3 from investment portfolio
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Well below 2°C
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Adopted Portfolio Coverage as engagement method for investment (Note 4), and the 38% of long-term investment portfolio by invested value setting SBTi validated targets by 2027.
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- In the future, the main investment targets will be focused on the enterprises committed SBT or targets approval by SBTi.
- No new coal mining investment from 2023
- No new coal-fired power plants investment from 2025 (except for green energy power generation investment)
- Decarbonization strategy (investment):
- Completely global phase out the coal business by 2030
- Completely global phase out the unconditional oil and gas by 2040
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Scope 3 from financing portfolio
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Well below 2°C
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- Financing – emission intensity for commercial real estate loan (kgCO2e/m2): adopts SDA, targets to reduce 59% by 2030
- Financing – emission intensity for electricity generation related loan (Note 5) (ton CO2e/MWh): adopts SDA, targets to reduce 50% by 2030
- Financing - long-term loans for fossil fuel (Note 6): Adopted Portfolio Coverage as engagement method, and the 38% of long-term loan portfolio by invested value setting SBTi validated targets by 2027
- Financing - emission intensity for Service-Buildings sector long-term loan (Note 6, Note 7) (kg CO2e/m2): adopts SDA, targets to reduce 58% by 2030
- Financing – emission intensity for iron and steel sector long-term loan (Note 6) (ton CO2e/ton): adopts SDA, targets to reduce 45% by 2030
- Financing – long-term loans (Note 6), ”computers, electronic and optical products manufacturing”, “other electronic parts and components manufacturing”, “bare printed circuit boards manufacturing” and “semiconductor” sector: Adopted Portolio Coverage as engagement method, and the 42% of long-term loan portfolio by invested value setting SBTi validated targets by 2027
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- Coal-fired power plants: No new project finance financing for coal-fired power plants from 2022. No new coal-fired power plants financing from 2025 (except for green energy power generation investment).
- Coal mining: No new coal mining financing from 2022
- Decarbonization strategy (financing):
- Completely global phase out the coal business by 2030
- Completely global phase out the unconditional oil and gas by 2040
Note1: Due to the time difference between the release of corporate greenhouse gas emissions and financial data, the achievement status of SBT goals in scope 3 here is 2021/12 data calculation result.
Note2: The methodology “SDA” is the abbreviation of Sector Decarbonization Approach.
Note3: Taishin Life Insurance was merged into Taishin FHC on June 30, 2021 and became a 100% subsidiary. However, because it merged into Taishin FHC for less than one year, the data was not included for 2021.
Note4: Only the SBT required asset classes were included for calculation: Stocks (ordinary shares and preferred shares) and corporate bonds of Exchange-listed and OTC-listed companies. Sovereign bonds, green bonds, private equity, and derivatives are not included.
Note5: Taishin has no project finance related to electricity generation.
Note6: long-term loans do not include small and medium-sized enterprise loans, corporate loans under one year.
Note7: Service-Buildings sector loans exclude wholesale and retail industries.
Decarbonization strategy
Through consultation with external experts and the opinions of Taishin FHC’s industry economic experts, we committed in 2022 that no new financing for coal mining and no new project finance for coal-fired power plants, then Taishin further researches and plans to set threshold, escalation schedule and phase-out for the entire coal business and unconditional oil and gas to implement the decarbonization strategy of Taishin FHC, therefore to actively response to global divestment actions.
Decarbonization phase-out schedule
